GM has just signed an important new deal with Vale Canada Limited, a Canadian mining subsidiary of Vale S.A. This agreement stipulates that Vale will serve as a supplier of battery-grade nickel sulfate from Vale’s proposed plant in Bécancour, Québec. In turn, this will secure GM a consistent supply of nickel sulfate to support its increasingly larger EV production in North America.
Vale will provide the equivalent of 25,000 metric tons per year of the material, which is used for GM Ultium battery cathodes. This amount of nickel sulfate is sufficient to support the production of roughly 350,000 electric vehicles per year. Distribution is expected to begin in the second half of 2026.
“GM’s dedicated cross-functional organization – including experts from global purchasing and supply chain, corporate development, legal, finance and treasury – is strictly focused on building a secure, sustainable, scalable and cost-competitive EV supply chain,” said Doug Parks, GM executive vice president of Global Product Development, Purchasing and Supply Chain. “Their work has already allowed GM to sign multiple binding agreements to secure the battery raw material to support 1 million units of annual EV capacity in North America in 2025. This new agreement with Vale reinforces GM’s leadership in building a secure and sustainable North America EV supply chain and will provide GM with significant supply of high-grade nickel sulfate from a low-carbon source.”
This announcement isn’t the only battery-related deal GM has signed of recent. As GM Authority reported, The General signed with Korean chemicals company Posco to build a battery materials plant in Québec, as well as another deal with Philadelphia-based lithium supplier Livent.
It comes as no surprise that GM wants to work with North American companies, seeking to qualify for the full US EV tax credit. As a quick reminder, in order to receive the full $7,500 credit, a vehicle must be manufactured in North America. This includes the stipulation that battery components and minerals must also be sourced for the region. As it stands, GM EVs won’t be eligible for the full tax credit for a few years.